Question
Consider the following balance sheet (20 points) ASSETS LIABILTIES Floating-rate mortgages (resets every 6 months) 75 6 month deposits 115 30 year fixed rate mtgs
- Consider the following balance sheet (20 points)
ASSETS LIABILTIES
Floating-rate mortgages
(resets every 6 months) 75 6 month deposits 115
30 year fixed rate mtgs 125 5 year deposits 20
Equity 65
TOTAL 200 200
Using the one year cumulative repricing gap model, what is expected change in net interest income for a 2% increase in rates?
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp
6th Edition
0324303254, 9780324303254
